Can someone please give me details about what is Bitcoin?
- Anonymous2 years agoFavorite Answer
Bitcoin is an implementation of a computer algorithm called Blockchain. Blockchain is basically a decentralized notary and ledger system. It consists of a single "chain" of events (the ledger) and a network of computers which process transactions. One computer receives and processes the transaction, while another verifies the integrity of the previous computers calculations to ensure it is legitimate. If they prove legitimate, the transaction is added to the ledger for all to see.
Bitcoin is essentially a mathematical algorithm created such that there are a limited set of correct answers. Think of it similar to calculating prime numbers. There is a large network of computers that are all attempting to calculate a correct answer to the math problem; this is called mining. When a solution is found, the answer is passed on to another computer who validates the solution (refer to blockchain above). Once it is verified, the number is added onto the ledger and all other computers are prevented from providing the same solution. Thus, as more answers are found it becomes more and more difficult to find correct answers to the problem. The computer that finds a correct answer is awarded 1 monopoly money (i.e. bitcoin). The computer that verifies the solution to the problem is also rewarded a small fraction of monopoly money. This monopoly money is added to a virtual wallet. People can trade the virtual monopoly money they have with others who are willing to accept it as payment. All of those transactions are also added to ledgers and similarly computers validate those transitions.
And that Muaazasif... is why you do not put any money or time into non-Government backed cryptocurrencies. Bitcoin and all existing cryptocurrencies have no tangible value. The perceived value and the sole reason why every cryptocurrancy is obscenely inflated is a misunderstanding and general lack of knowledge. The valuable piece of Bitcoin is Blockchain. There are hundreds of cryptocurrancy that are all (almost) exactly the same... with Bitcoin being only one of them.
- KyleLv 72 years ago
Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. Wikipedia
you can think of it like paypal, but without a bank account. you purchase bitcoin currency, then can use that for various transactions.